Corporate Loan Origination Version NT FLEXCUBE UBS V.UM [August] [2010] Oracle Part Number E

Transcription

1 Corporate Loan Origination Version NT FLEXCUBE UBS V.UM [August] [2010] Oracle Part Number E

2 Document Control Author: Documentation Team Created on : July 10, 2010 Updated by: Documentation Team Group: UBPG Revision No : Final Reviewed by: Development/Testing teams Approved by: Software Quality Assurance Team Updated on: August 13, 2010 Reviewed on: August 13, 2010 Approved on: August 13, 2010

3 Table of Contents Corporate Loan Origination 1. CORPORATE LOAN ORIGINATION INTRODUCTION MAINTAINING CREDIT RATING RULES Main Tab Risk Factor Tab Specifying Credit Grades VIEWING CREDIT RULE SUMMARY MAINTAINING CREDIT RATIOS Specifying Formula Details VIEWING CREDIT RATIO SUMMARY MAINTAINING OVERRIDE DETAILS VIEWING OVERRIDE SUMMARY MAINTAINING DOCUMENT CHECKLIST AND ADVICES VIEWING DOCUMENT CHECKLIST SUMMARY MAINTAINING APPLICATION CATEGORY DETAILS Main Tab Agency Tab VIEWING APPLICATION CATEGORY SUMMARY STAGES IN CORPORATE LOAN ORIGINATION Process Flow Diagram Process Matrix Step 1. Application Entry Customer Tab Details Tab Financials Tab Limits Tab Collaterals Tab Requested Tab Comments Tab Capturing Document Details Step 2. Application Verification Step 3. Underwriting Credit Score Tab Ratio Tab Bureau Tab Investigation Tab Loan Tab Schedule Tab Charges Tab Fields Tab Checklist Tab Comments Tab Step 4. Facility Approval Step 5. Document Verification Step 6. Customer, Collateral, Facility, Loan, Account Creation

4 1. Corporate Loan Origination 1.1 Introduction The process of loan origination gets initiated when a prospective customer approaches the bank, with a loan account opening request or when the bank approaches a prospective customer, taking lead from its database. In case of a bank initiated request, the process moves forward only if the prospective customer is interested. The entire process is carried out in multiple stages and on successful completion of each stage, it moves automatically to the next stage. Corporate lending process flow uses Oracle BPEL framework with multiple human tasks for workflow stages. The capture and enrichment of information in multiple steps can be dynamically assigned to different user roles, so that multiple users can take part in the transaction. Oracle Business rules are used for dynamic creation of multiple approval stages. The following details need to be maintained for originating a Corporate Loan: Credit rating rules Credit ratios Override details Document checklist and advices Application category details The Corporate Loan origination process flow is composed of following stages: Application Entry Application Verification Underwriting Loan Approval Document Verification Customer, Collateral, Facility, Loan, Account Creation The maintenances and the different stages in the process flow are explained in detail in the following sections. 1.2 Maintaining Credit Rating Rules You can maintain a set of questions along with a possible set of answers with associated scores, to assess the credit rating of a prospective loan customer. You can also calculate the risk factor associated with the loan and arrive at a credit grade based on the scores obtained. You can maintain these details in Rule Details screen. You can invoke this screen by typing ORDRULMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-1

5 You can specify the following details in this screen: Rule Id Specify a unique identification for the credit rating rule. Description Specify a suitable description for the credit rating rule. Type Select the type of the loan from the following options available: Retail Corporate Main Tab You can maintain the following details in this tab: Question Details Question Id The question Id is automatically generated by the system. 1-2

6 Category Select the category to which the question belongs from the option list provided. Question Specify the question to be asked to the prospective customer to derive the credit rating score. Answer Details Sequence Number The sequence number is automatically generated by the system. Possible Answer Specify a set of possible answers to be associated with a question. Score Specify the score associated with an answer Risk Factor Tab You can specify the risk details associated with the loan and also indicate the formula for calculating the credit score in this tab. You can specify the following details here: 1-3

7 Risk Id Specify a unique identifier for the credit risk being maintained. Description Specify a suitable description for the credit risk Specifying Formula Details You can specify the formula to calculate the credit score by clicking the Formula button corresponding to a credit risk entry in Risk Factor tab. The Formula screen is displayed where you can specify the condition for calculating the credit score associated with a risk condition. You can specify the following details here: Sequence Number The sequence number is automatically generated by the system. Condition The condition specified using the Elements, Functions, Operators etc. gets displayed here. Result Specify the result to be associated with the condition specified. Elements Specify the data elements to be used to define the formula for credit score calculation or select the element from the option list provided. Functions Select the mathematical function to be used to define the formula from the drop-down list provided. 1-4

8 Braces Select the opening or the closing brace from the drop-down list provided, to define the credit score calculation formula. Operators Select the mathematical operator to be used to define the credit score calculation formula. You can select +, -, *, or /. Logical Operators Select the logical operator to be used to define the credit score calculation formula. You can select <, >, =, <>, >=, <=, AND or OR Specifying Credit Grades You can maintain different credit grades based on the credit scores obtained. Click Rating button in Rule Details screens to invoke the Rating screen, where you can maintain these details. You can specify the following details here: Sequence Number The sequence number is automatically generated by the system. Score Specify the score associated with a credit risk. Grade Specify the credit grade based on the score obtained. 1.3 Viewing Credit Rule Summary You can view a summary of the credit rules in Rule Maintenance screen. You can also query for a particular record based on desired search criteria. 1-5

9 You can invoke this screen by typing ORSRULMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. You can specify any of the following details to search for a record: Authorization Status Record Status Rule Id Click Search button to search for a record based on the search criteria specified. You can double click a desired record to view the detailed screen. 1.4 Maintaining Credit Ratios You can maintain the rules to calculate the credit ratios in Credit Ratio Maintenance screen. You can invoke this screen by typing ORDRATMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-6

10 You can specify the following details in this screen: Group Id Specify a unique identification code for the ratio group. Description Specify a suitable description for the ratio group. Type Select the type of the loan from the following options available: Retail Corporate Ratio Id Specify a unique identification for the credit ratio being maintained. Description Specify a suitable description for the credit ratio Specifying Formula Details You can specify the formula to calculate the credit ratio by clicking the Formula button corresponding to a ratio Id. The Formula screen is displayed where you can specify the condition for calculating the credit ratio associated with a ratio Id. 1-7

11 You can specify the following details here: Ratio Type Select the type of the ratio being maintained, from the drop down list provided. The following options are available: Stated Before Stated After Actual Before Actual After Condition The condition specified using the Elements, Functions, Operators etc. gets displayed here. Elements Specify the data elements to be used to define the formula for credit ratio calculation or select the element from the option list provided. Functions Select the mathematical function to be used to define the formula from the drop-down list provided. Braces Select the opening or the closing brace from the drop-down list provided, to define the credit ratio calculation formula. Operators Select the mathematical operator to be used to define the credit ratio calculation formula. You can select +, -, *, or /. 1-8

12 1.5 Viewing Credit Ratio Summary You can view a summary of the credit ratios in Credit Ratio Maintenance screen. You can also query for a particular record based on desired search criteria. You can invoke this screen by typing ORSRATMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. You can specify any of the following details to search for a record: Authorization Status Record Status Group Id Click Search button to search for a record based on the search criteria specified. You can double click a desired record to view the detailed screen. 1.6 Maintaining Override Details You can maintain the formulae to verify if overrides need to be generated dynamically, in Override Maintenance screen. You can invoke this screen by typing ORDOVDMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-9

13 You can specify the following details in this screen: Process Code Specify the process code of the process for which you wish to maintain override conditions or select the process code from the option list provided. Application Category Specify the category to which the loan application belongs or select the application category from the option list provided. Type Select the type of the loan from the following options available: Retail Corporate Stage Select the stage of the loan origination process from the option list provided. The various stages can be Application Entry, Application Verification, Underwriting, Loan Approval etc. Description Specify a suitable description for the loan origination stage. Overrides Here, you can capture the details of the conditions to be checked for generating override messages. 1-10

14 Sequence Number The sequence number is automatically generated by the system. Condition The condition specified using the Elements, Functions, Operators etc. gets displayed here. Error Code Specify the error code to be used to generate the override message or select the error code from the option list provided. Error Parameter Specify the error parameter to be substituted in the override messages. Elements Specify the data elements to be used to define the conditions for generating override messages or select the element from the option list provided. Functions Select the mathematical function to be used to define the condition from the drop-down list provided. Braces Select the opening or the closing brace from the drop-down list provided, to define the conditions for generating override messages. Operators Select the mathematical operator to be used to define the conditions for generating override messages. You can select +, -, *, or /. Logical Operators Select the logical operator to be used to define the conditions for generating override messages. You can select <, >, =, <>, >=, <=, AND or OR. 1.7 Viewing Override Summary You can view a summary of the overrides in Override Maintenance screen. You can also query for a particular record based on desired search criteria. You can invoke this screen by typing ORSOVDMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-11

15 You can specify any of the following details to search for a record: Authorization Status Record Status Process Code Application Category Click Search button to search for a record based on the search criteria specified. You can double click a desired record to view the detailed screen. 1.8 Maintaining Document Checklist and Advices You can maintain the list of documents that are required during the loan origination process, in Documents and Advice Maintenance screen. Document checklists are maintained for an application category and for the various stages in the origination process. You can also maintain the details of the Advices that need to be generated on completion of a stage in the process. You can invoke Documents and Advice Maintenance screen by typing ORDDOCMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-12

16 You can specify the following details in this screen: Process Code Specify the process code of the process for which you wish to maintain override conditions or select the process code from the option list provided. Application Category Specify the category to which the loan application belongs or select the application category from the option list provided. Stage Select the stage of the loan origination process from the option list provided. The various stages can be Application Entry, Application Verification, Underwriting, Loan Approval etc. Stage Title Specify a suitable description for the loan origination stage. Document Details Document Category Specify the category to which the document belongs or select the document category from the option list provided. Document Type Specify the type of the document or select the document type from the option list provided. 1-13

17 Mandatory Select the option to indicate whether the document is mandatory or not. You can select any of the following options from the drop-down list provided: Mandatory Overridden Others BI Advices Report Name Specify the name of the advice report to be generated on completion of the process stage. Template Specify the template to be used to generate the advice report. Format Select the format in which the advice report needs to be generated from the drop-down list provided. The following options are available: PDF RTF Locale Select the locale information to be used for generating the advices from the drop-down list. The following options are available: en-us 1.9 Viewing Document Checklist Summary You can view a summary of the document checklists and advices in Document Details screen. You can also query for a particular record based on desired search criteria. You can invoke this screen by typing ORSDOCMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-14

18 You can specify any of the following details to search for a record: Authorization Status Record Status Process Code Application Category Click Search button to search for a record based on the search criteria specified. You can double click a desired record to view the detailed screen Maintaining Application Category Details You can maintain various application categories linked to multiple loan products that cater to the requirements of different customers, in Application Category Maintenance screen. The entire process of loan origination depends mainly on the category to which the application belongs. You can invoke Application Category Maintenance screen by typing ORDCATMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-15

19 You can specify the following details in this screen: Application Category Specify a unique identification for the loan application category. Category Description Specify a suitable description for the loan application category. Rule Id Specify the credit rule to be associated with the application category or select the Rule Id from the option list provided. Ratio Id Specify the credit ratio to be associated with the application category or select the Ratio Id from the option list provided Main Tab You can capture the following details in the Main tab. Product Details You can specify the following details related to the loan product here: Product Code Specify the identification code of the loan product to be linked to the application category being maintained. You can also select the product code from the option list provided. 1-16

20 Product Description The description associated with the selected loan product gets displayed here. Default Check this box to indicate if the loan product selected should be maintained as the default product for the application category. Other Details You can capture the additional details related to the loan product here: Offer Id Specify a unique identification for the loan offer being made to the customer. No of Installments Specify the number of installments associated with the loan. Units Select the units based on which the loan disbursement should be carried out. The following options are available in the option list: Daily Weekly Monthly Quarterly Half Yearly Yearly Frequency Specify the frequency at which the loan disbursement should be carried out. Rate Specify the interest rate to be associated with the loan. Rate Code Specify the rate code used to derive the interest rate or select the rate code from the option list provided. Spread Specify the spread that is applicable for the loan being offered. Effective Rate The effective rate of interest gets displayed here, based on the interest and the spread specified. 1-17

21 Default Check this box to indicate if the loan offer specified should be maintained as the default offer for the application category Agency Tab In Agency tab, you can capture the details of the credit rating agencies and credit bureaus that provide credit rating details for customer securities. You can specify the following details in this screen: Credit Agency You can capture the details related to the credit rating agencies here. Agency Code Specify the identification code of the rating agency that provides credit rating details for customer securities. Agency Name Specify the name of the rating agency that provides credit rating details for customer securities. Bureau Details You can capture the details related to the credit bureau here. 1-18

22 Bureau Code Specify the identification code of the credit bureau that provides credit ratings for customer securities. Bureau Specify the name of the credit bureau that provides credit rating details for customer securities Viewing Application Category Summary You can view a summary of the application categories in Category Details screen. You can also query for a particular record based on desired search criteria. You can invoke this screen by typing ORSCATMT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. You can specify any of the following details to search for a record: Authorization Status Record Status Application Category Click Search button to search for a record based on the search criteria specified. You can double click a desired record to view the detailed screen. 1-19

23 1.12 Stages in Corporate Loan Origination The different stages in corporate lending process flow are designed using Oracle BPEL framework. The process of loan origination consists of several manual as well as system tasks, carried out in a sequential manner. Many users can be involved in the completion of a transaction and at each stage of the process, a user or a group of users, assigned with a task, acquire and work on the relevant transaction. Oracle Business rules that are embedded help the dynamic creation of multiple approval stages. The different stages and sub-stages in the process flow can be summarized as follows: Application Entry Information captured in this stage include Applicant Information Corporate Information Directors Information Application details Requested Loan Details Facility Information Collateral Details Checklist Documents Application Verification Underwriting Applicant Financial Ratios Applicant Credit Score Applicant Bureau Report Loan Offers Loan Schedules Loan Charges Field Investigation Document Capture Advice Generation Facility Approval Document Verification Information captured during Previous stages are verified All documents obtained are verified against checklist Customer, Account, Facility, Loan Contract, Collateral Creation Customer Creation Current Account Creation Facility Creation Loan Account Creation Advice Generation 1-20

24 Process Flow Diagram The process flow diagram given below illustrates the activities carried out during the different stages of the workflow. 1-21

25 The various tasks carried out in these stages will be explained in detail in the subsequent sections Process Matrix The process matrix given below lists out the different stages, the user role handling each stage, the function Ids involved and the exit points for each stage. Stage Stage Title Description Roles Function Id Exit point 1 Application Entry The following details are captured as part of this stage Application Details Applicant Details Requested Lending Details Collateral Details Check List User Defined Fields and Comments Document Capture Advice Generation ORDCLAPP PROCEED, CANCEL 2 Application Verification The details captured as part of Application Entry stage is verified ORDCLVER PROCEED, REJECT, CANCEL 3 Underwriting The following details are captured as part of this stage Applicant Financial Ratios Applicant Credit Score Applicant Bureau Report Loan Offers Loan Schedules Loan Charges Field Investigation Document Capture Advice Generation ORDCLUND PROCEED, REJECT, CANCEL 4 Facility Approval Facility Approval ORDCLAPR PROCEED, 1-22

26 Stage Stage Title Description Roles Function Id Exit point REJECT, CANCEL 5 Document Verification Document Verification Final Verification Customer Creation Loan Account Creation Advice Generation ORDCLDVR PROCEED, REJECT, CANCEL 6 Customer / Account / Facility / Loan / Collateral Creation The system task is used to create the following Customer Creation N/A N/A Current Account Creation Facility Creation Collateral Creation Loan Creation The stages are explained in detail in the sections that follow. Step 1. Application Entry In this stage, the bank receives an application requesting for the creation of a facility from a prospective borrower/customer. The relevant documents and financial statements are also provided by the customer. If the applicant/borrower does not have an account but intends to open one, the bank also obtains the account opening form and related documents as part of this activity. Users belonging to user role CEROLE are authorized to perform the tasks associated with this stage. The following details are captured in this stage: Applicant information Applicant contact information Director s information Corporate information Facility Loan details Collateral details Documents obtained from the applicant are also uploaded during this stage. You can key-in the loan application details required in Corporate Loan Application Entry screen. You can also invoke this screen by typing ORDCLAPP in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. 1-23

27 The Application Number is automatically generated by the system. You can capture the following details in the main screen: Application Category Specify the loan application category to be used or select the application category from the option User Reference Number Specify the user reference number for the loan application. Date Specify the date on which the application was entered or select the date by clicking the Calendar icon provided. Purpose Specify the purpose for which the loan is availed. Channel Specify the channel Id of the originating channel. Intermediary Code Specify the identification code of the intermediary agency if the customer has been associated with any. Status The status of the application gets displayed here. 1-24

28 Click Default button to default the details related corresponding to the prospective loan customer Customer Tab In Customer tab, you can capture the details associated with the loan applicant. The customer details corresponding to the Application Category specified are displayed here. You can modify these details, if required. For existing customers of the bank, you need to specify the following details: Existing Check this box to indicate if the customer applying for the loan is an existing customer of the bank. Customer No For existing customers you need to select the customer number from the option list provided. Click Def button to default the details of existing customers. For more details on capturing Customer details, refer the chapter titled Maintaining Customer Information Files in Core Entities user manual Fields You can capture the user defined field details for the customer, if any by clicking Fields button. The Customer UDF screen gets displayed where you can maintain the UDF details. You can specify the following details in this screen: Name Specify the name of the UDF being created for the customer. 1-25

29 Value Specify the value associated with the UDF being created for the customer Dedupe You can verify if the customer details are duplicated by clicking the Dedupe button. Duplicate Customer List screen gets displayed where any duplicate customer details are displayed Loans You can view the existing loan for the customer by clicking the Loans button Details Tab The address and employment related details of the customer corresponding to the Application Category selected are displayed in this tab. You can modify these details if required. 1-26

30 In this screen, you can capture multiple address and employment details, if required. For more details on capturing Adreess details, refer the chapter titled Maintaining Customer Information Files in Core Entities user manual. You can capture the following additional details related to the Director in this tab: Director Name Specify the name of the director of the corporate customer. Tax Id Specify the tax identification of the director. Mobile Number Specify the mobile number of the director. Specify the Id of the director. Permanent Address Address Specify the permanent address of the director. Country Specify the country associated with the address specified. 1-27

31 Mailing Line 1 4 Specify the mailing address of the customer in Line 1 to Line 4 provided Financials Tab You can capture the financial details corresponding to the customer in this screen. You can capture the following details here: Assets Details Capital details Reserves Details Surplus Details Liabilities Details Cash Flows Credit Application Assets You can capture the following details corresponding to the loan applicant s assets: Fixed Assets Specify the value associated with the fixed assets of the customer. 1-28

32 Intangible Assets Specify the value associated with the intangible assets of the customer. Non Current Assets Specify the value associated with the non current assets of the customer. Current Assets Specify the value associated with the current assets of the customer. Capital You can capture the following details corresponding to the loan applicant s capital: Issued Capital Specify the value associated with the issued capital of the customer. Paid-Up Capital Specify the value associated with the paid-up capital of the customer. Reserves You can capture the following details corresponding to the loan applicant s cash reserves: Subsidy from Govt Specify the value of any subsidies the customer has obtained from the government. General Reserves Specify the value associated with any general reserves of the customer. Surplus You can capture the following details corresponding to the loan applicant s surplus income: Credit Balance in PL Specify the surplus credit balance, if any, associated with the customer. Liabilities You can capture the following details corresponding to the loan applicant s liabilities: Term Liabilities Specify the value associated with the long term liabilities associated with the customer. Current Liabilities Specify the value associated with the current liabilities associated with the customer. 1-29

33 Cash Flows You can capture the following details corresponding to the loan applicant s cash flows: Operations Activities Specify the cash flow value associated with the operation activities of the corporate customer. Investing Activities Specify the cash flow value associated with the investing activities of the corporate customer. Financing Activities Specify the cash flow value associated with the financing activities of the corporate customer. Credit Application The details associated with how the corporate customer has deployed his assets need to be captured as part of assessing the risk associated with the loan proposed.you can capture the following details related to the credit application: Borrower Profile Specify the details corresponding to the profile of the corporate customer s customer. Financial Performance Specify the details corresponding to the financial performance of the corporate customer s customer. Borrower Market Position Specify the details corresponding to the market position of the corporate customer s customer. Risk and Mitigants Specify the details corresponding to the risk and mitigants associated with the corporate customer s customer. Risk Department Mitigants Specify the inputs from risk department related to the risk mitigants associated with the corporate customer s customer. Risk Department Assessment Specify the risk department s assessment corresponding the corporate customer s customer. Facilities Proposed Specify the details corresponding to the facilities that have been proposed by the corporate customer. 1-30

34 Approved Facilities Specify the details corresponding to the facilities that have been approved by the corporate customer. Recommended Specify the details corresponding to the facilities that have been recommended by the corporate customer. Terms and Conditions Specify the terms and conditions associated with the credit application Limits Tab You can capture the Facility Information in Limits tab. You can capture the following details here: Line details Line Currency Limit Amount Start, End and Last available Date of Facility For more details on capturing Limit details, refer the section titled Maintaining Credit Facility Details in Enterprise Limits and Collateral Management user manual. 1-31

35 Collaterals Tab You can capture the details related to the collaterals provided by the customer in this tab. For more details on capturing Collateral details, refer the chapter titled Maintaining Collateral Details in Enterprise Limits and Collateral Management user manual Requested Tab The details related to the requested loan can be captured in this tab. 1-32

36 You can capture the following details here: Product Code Specify the corporate lending product to be used for initiating the loan or select the product code from the option list provided. Requested Amount Specify the loan amount requested by the prospective customer. Currency Specify the loan currency preference of the customer or select the currency from the option list. Intrate Specify the preferred interest rate of the prospective customer. Tenor (in months) Specify the preferred loan tenor (in months) of the prospective customer. Down-payment Amount Specify the preferred amount that the prospective customer can provide as down-payment. Promotion Id Specify the promotion Id of the loan offer being requested by the customer. Remarks Specify remarks, if any, associated with the loan application. 1-33

37 You can also capture the following itemization details corresponding to the requested loan: Itemization Specify the tenor itemization that is required. For example, you can specify the itemizations like Booking Amount, Payment, Interiors etc. Requested Amount Specify the amount requested corresponding to the itemization specified. Comments Specify comments, if any, corresponding to the itemization Comments Tab In this tab, you can specify comments, if any, related to the loan application. You can specify the following details here: Sequence Number The sequence number is automatically generated by the system. Comments Specify comments, if any, to be associated with the loan application. Comment Type Specify the type of the comment given. 1-34

38 Comment Date Specify the date on which the comment was given or select the date by clicking the Calendar icon Capturing Document Details You can upload the scanned documents in Documents sub screen. To invoke this screen, click Documents button in Corporate Loan Application Entry screen. You can capture the following details in this screen: Document Category Specify the category to which the document belongs or select the document category from the option list provided. Document Reference Number Specify a unique reference number for the document being uploaded. Document Type Specify the type of the document or select the document type from the option list provided. Click Upload button to upload the documents or View button to view the documents. After specifying the mandatory details in Application Entry screen, select the Outcome that you wish in the lower portion of the screen. To move to the next stage select PROCEED as the outcome and click the Save icon. You can select CANCEL to terminate the process, if required. The following validations are carried out in this stage: If any of the mandatory documents are missing, the system displays an error message If any of the override documents are missing, the system displays an override message If any mandatory customer information is missing, the system displays error messages You will not be able to proceed to the next stage without correcting the errors, if any. 1-35

39 On successful completion a message, stating that the task is successfully completed, gets displayed. To acquire the next stage, you need to go to the Task menu and select Assigned under Standard option. All tasks that have been successfully completed are listed in the right side of the screen. Select the checkbox against your Workflow Ref No and click Acquire button at the top of the screen to acquire the next stage of the task. The following message gets displayed on successful acquisition of the task. 1-36

40 Click Ok to proceed to the next stage. To select the acquired task for the next stage, select Acquired under Standard option in the Task menu. All the tasks that have been successfully acquired are displayed in the right side of the screen. Search for your workflow reference number and click the Workflow Ref No to open Corporate Loan Application Verification screen. Step 2. Application Verification The information captured in the previous stage is verified in the Application Verification stage. Application verification is carried out by the user role CMROLE. The details related to the loan application entry are displayed in this screen, which can be verified by the verifier. The details cannot be modified in this stage, but comments can be added appropriately. On completion of this stage, the advices that are maintained for the stage are generated. The verifier can either send the application back to the previous stage if the information provided is not adequate or can cancel it if the information captured is not satisfactory. 1-37

41 If the application details are verified successfully, the verifier can proceed with the processing of the application by selecting PROCEED as the Outcome. The verifier can select REJECT to return the process to previous stage for data correction or CANCEL to terminate the process. On successful verification a message, stating that the task is successfully completed, gets displayed. To acquire the next stage, you need to go to the Task menu and select Assigned under Standard option. All tasks that have been successfully completed are listed in the right side of the screen. Select the checkbox against your Workflow Ref No and click Acquire button at the top of the screen to acquire the next stage of the task. The following message gets displayed on successful acquisition of the task. Click Ok to proceed to the next stage. To select the acquired task for the next stage, select Acquired under Standard option in the Task menu. All the tasks that have been successfully acquired are displayed in the right side of the screen. Search for your workflow reference number and click the Workflow Ref No to open Corporate Loan Underwriting screen. Step 3. Underwriting In this stage, the bank assesses the eligibility of the borrower for the requested loan offer, based on the analysis of the borrower s financial ratios and credit scores. The bank also obtains credit details from external agencies and field investigation agencies. The tasks in underwriting stage are also carried out by the user role CMROLE. After ascertaining the eligibility of the customer, the bank provides a facility offer to the borrower and generates payment schedule and schedule details. The advices that are maintained for the stage are generated on completion of the stage Credit Score Tab The credit score tab is used to calculate the credit score details of the customer. You can also interface with external Credit engines and display recommendations and report. Internal Credit engine obtains information from customer and calculates credit score and displays system recommendation. 1-38

42 The set of questions used to assess the credit rating of a prospective loan customer, associated Rule Id are displayed in this screen. You can specify the following details here: Answer Specify the answer to be associated with the question used for calculating the credit score. Risk Factor Specify the risk factor associated with the loan, if any. Description Specify a suitable description for the risk factor associated with the loan. Click Calculate button to calculate the credit score and the grade, based on the formula maintained for calculating the credit score. The Grade and the Score are displayed based on this calculation Ratio Tab In the Ratio tab, the system calculates the stated and actual income/debt ratios and also calculates the ratio based on What if payment amount. 1-39

43 The stated income and debt of the customer are displayed here You can capture the following additional details here. Actual Monthly Income Specify the actual monthly income of the customer based on documentary proof provided. Monthly Debt Specify the actual monthly debt of the customer based on documentary proof provided. Click Calculate Ratios button to calculate the asset/ liability ratios for the customer. What if Pmt Amt Specify the EMI amount that the customer is ready to pay. Click Update Ratio button to update the asset/ liability ratios for the customer, taking into account the EMI payments also. The ratios for Installment, Loan To Value and Disposable Income are calculated for the following conditions: Stated Before Stated After Actual Before Actual After 1-40

44 Bureau Tab You can interface with external credit bureaus and view report obtained from them in Bureau tab. The credit agencies and the bureaus maintained for the Application Category are displayed in this screen: You can capture the remarks and recommendations from these agencies in this tab. You can also view the credit report obtained from the agencies and bureaus. External Credit Rating External Agency The external credit agencies maintained for the Application Category in Application Category Maintenance are displayed here. Recommended Select the recommendation of the credit agency for the loan requested from the following options provided in the drop-down list: Recommended Not Recommended Remarks Specify remarks, if any, associated with the loan application. 1-41

45 Credit Bureau Details Customer Id The identification of the loan customer gets displayed here. Bureau The credit bureau maintained for the Application Category in Application Category Maintenance gets displayed here. Status Select the status for the credit bureau check from the following options in the drop-down list: Completed Pending Remarks Specify remarks, if any, associated with the loan application. Click Report button adjacent to credit rating record or credit bureau record to view the report obtained from the credit rating agency or the credit bureau Investigation Tab In this tab, the system captures the field investigation details associated with the customer. The following details related to the customer can be captured here: Verification Type 1-42

46 Verification agency You can view the investigation report associated with the customer by clicking the Report button Loan Tab In the Loans tab, the system displays the list of the multiple loan offers that are attached to the application category specified. The details related to the loan offer like the number of installments, frequency, unit, interest rate etc. are displayed here. Select the reuired offer by clicking the Check option and click then click the Apply button to apply the selected loan offer. The details corresponding to the selected loan offer are displayed in Loan Details section. You can modify these details, if required, and click Apply button to calcualte the schedule details. The payment schedules are derived based on the offer selected. You can select only one loan offer in this screen Schedule Tab In Schedule tab, the system calculates and displays the payment schedules and the schedule details based on the loan offer selected. 1-43

47 The following details related to the schedule are displayed here: Component name Schedule type First due date Number Amount For each component of the components listed, the system calculates and displays the details like the Due Date, Amount Due, EMI Amount and Amortized Principal Charges Tab In Charges tab, the system calculates and displays charges, if any applicable. 1-44

48 The system calculates and displays the charge details associated with the loan. The following details are displayed: Waive Component Name Event Code Associated currency Amount Check this box to waive the charges associated with the loan Fields Tab In this tab, you can capture the user defined fields associated with the loan. 1-45

49 Checklist Tab In this tab, the system lists the checklists that are associated with the application category. The following details are displayed in this screen: 1-46

50 Checklist Id Description Verified Check this box to indicate that checklist maintained has been verified for the customer. Comments Specify comments, if any, associated with the loan application Comments Tab In this tab, you can capture the comments by the users. You can capture the following details: Comments Specify comments, if any, to be associated with the loan application. Comment Type Specify the type of the comment given. Comment Date Specify the date on which the comment was given or select the date by clicking the Calendar icon. 1-47

51 If the underwriting stage is successfully completed, the underwriter can proceed with the processing of the application by selecting PROCEED as the Outcome. The underwriter can select REJECT to return the process to previous stage for data correction or CANCEL to terminate the process. On successful completion a message, stating that the task is successfully completed, gets displayed. To acquire the next stage, you need to go to the Task menu and select Assigned under Standard option. All tasks that have been successfully completed are listed in the right side of the screen. Select the checkbox against your Workflow Ref No and click Acquire button at the top of the screen to acquire the next stage of the task. The following message gets displayed on successful acquisition of the task. Click Ok to proceed to the next stage. To select the acquired task for the next stage, select Acquired under Standard option in the Task menu. All the tasks that have been successfully acquired are displayed in the right side of the screen. Search for your workflow reference number and click the Workflow Ref No to open Corporate Loan Approval screen. Step 4. Facility Approval In the Loan Approval stage, the approver verifies the facility/loan application, analyzes the applicant s financial status, credit rating and field investigation reports and based on the credit worthiness of the customer approves the loan offered to the customer. Users belonging to user role CMROLE are authorized to perform these tasks. 1-48

52 The approver can send the application back to the previous stage if the information provided is not adequate or choose to cancel it if the information captured is not satisfactory. If the application details are verified successfully, the approver can proceed with the processing of the application by selecting PROCEED as the Outcome. The approver can select RETURN to return the process to previous stage for data correction or CANCEL to terminate the process. On successful completion, a message stating that the task is successfully completed gets displayed. To acquire the next stage, you need to go to the Task menu and select Assigned under Standard option. All tasks that have been successfully completed are listed in the right side of the screen. Select the checkbox against your Workflow Ref No and click Acquire button at the top of the screen to acquire the next stage of the task. The following message gets displayed on successful acquisition of the task. 1-49

53 Click Ok to proceed to the next stage. To select the acquired task for the next stage, select Acquired under Standard option in the Task menu. All the tasks that have been successfully acquired are displayed in the right side of the screen. Search for your workflow reference number and click the Workflow Ref No to open Corporate Loan Document Verification screen. Any advices maintained for this stage are generated after the completion of the stage. Step 5. Document Verification In the Document Verification stage, the documents captured in the previous stages are verified. It is ensured that all documents in the checklist maintained are obtained from the customer. In this stage, the application and applicant information captured as part of the previous stages undergoes a final verification. Users belonging to user role CMROLE are authorized to perform these tasks. The verifier can choose to send the application back to the previous stage if the information provided is not adequate or choose to cancel it if the information captured is not satisfactory. If the applicant, application and document details are verified successfully, the verifier can proceed with the processing of the application by selecting PROCEED as the Outcome. The verifier can select RETURN to return the process to underwriting stage for data correction or CANCEL to terminate the process. On successful completion, a message stating that the task is successfully completed gets displayed. The customer, customer account, collateral, facility etc. are created in the system on completion of the Document verification stage. 1-50

54 Step 6. Customer, Collateral, Facility, Loan, Account Creation In this final stage, the facility/loan and collateral are created. Customer is also created if the applicant is a new customer. Current account is also created if information is captured for the same. The system creates a Facility/Loan, Customer and Collateral in Oracle FLEXCUBE with details captured from previous stages. A user in manager level role handles this stage. The creation of customer, collateral and facility can be verified in STDCIF, GEDCOLLT, and GEDFACLT screens respectively. 1-51

55 Corporate Loan Origination [August] [2010] Version 11.1 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA U.S.A. Worldwide Inquiries: Phone: Fax: financial_services/ Copyright [2010] Oracle Financial Services Software Limited. All rights reserved. No part of this work may be reproduced, stored in a retrieval system, adopted or transmitted in any form or by any means, electronic, mechanical, photographic, graphic, optic recording or otherwise, translated in any language or computer language, without the prior written permission of Oracle Financial Services Software Limited. Due care has been taken to make this document and accompanying software package as accurate as possible. However, Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System. Furthermore, Oracle Financial Services Software Limited reserves the right to alter, modify or otherwise change in any manner the content hereof, without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes. All company and product names are trademarks of the respective companies with which they are associated.